Texas Property Code
§ 142.005 — TRUST FOR PROPERTY
PR § 142.005Title 10. MISCELLANEOUS BENEFICIAL PROPERTY INTERESTS · Part A. PERSONS UNDER DISABILITY · Ch. 142. MANAGEMENT OF PROPERTY RECOVERED IN SUIT BY A NEXT FRIEND OR GUARDIAN AD LITEM
Statute text
View on source(a)Any court of record with jurisdiction to hear a suit involving a beneficiary may, on application and on a finding that the creation of a trust would be in the best interests of the beneficiary, enter a decree in the record directing the clerk to deliver any funds accruing to the beneficiary under the judgment to a financial institution, except as provided by Subsections (m) and (n).
(b)The decree shall provide for the creation of a trust for the management of the funds for the benefit of the beneficiary and for terms, conditions, and limitations of the trust, as determined by the court, that are not in conflict with the following mandatory provisions:
(1)The beneficiary shall be the sole beneficiary of the trust.
(2)The trustee may disburse amounts of the trust's principal, income, or both as the trustee in the trustee's sole discretion determines to be reasonably necessary for the health, education, support, or maintenance of the beneficiary. The trustee may conclusively presume that medicine or treatments approved by a licensed physician are appropriate for the health of the beneficiary.
(3)The income of the trust not disbursed under Subdivision (2) shall be added to the principal of the trust.
(4)If the beneficiary is a minor who is not considered disabled for purposes of 42 U.S.C. Chapter 7, Subchapter XVI, the trust shall terminate on the death of the beneficiary, on the beneficiary's attaining an age stated in the trust, or on the 25th birthday of the beneficiary, whichever occurs first. (4-a) If the court finds that a minor beneficiary is considered disabled for purposes of 42 U.S.C. Chapter 7, Subchapter XVI, the trust shall terminate on the death of the beneficiary. (4-b) If the beneficiary is an incapacitated person, the trust shall terminate on the death of the beneficiary or when the beneficiary regains capacity.
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Legislative history
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 28, eff. January 1, 2006. Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 20, eff. September 1, 2007. Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 6, eff. September 1, 2019.